Rise in value of yuan to benefit Macau economy

15 January 2007

Macau, China, 15 Jan – the continued rise in value of China’s national currency, the yuan, is expected to have a positive impact on Macau’s economy, The president of the Macau Monetary Authority (MMA) told English-language newspaper Macau Post Daily Monday.

Anselmo Teng said that the valuation of the yuan was normal as it reflected the strong economic growth of mainland China.

A strong yuan meant that exports from Macau to China were cheaper, a “collateral effect” that should serve to convince local businesspeople to make better use of the advantages of Chinese Economic Partnership Agreement (CEPA).

Teng also recognized, however, that a strong yuan also meant that Chinese products would become more expensive in Macau, which could lead to higher inflation, which in November stood at 5.2 percent.

On the other hand, the rising value of the yuan will benefit the local tourism industry as the purchasing power of mainland Chinese visitors will increase.

“The higher value of the yuan is beneficial for Macau’s economy, which is focused on tourism,” Teng said.

More than half of the tourist visiting Macau each year are from mainland China.

The exchange rate Monday stood at 1.0296 Macau patacas for 1 yuan. (macauhub)